Business Intelligence

905 Words Feb 24th, 2008 4 Pages
Business intelligence (BI) processes monitor and analyze business transaction processes to ensure that they are optimized to meet the business goals of the organization. These goals may be operational goals that affect daily business operations, tactical goals that involve short-term programs such as marketing campaigns, or strategic goals that entail long-term objectives like increasing revenues and reducing costs.
This is a kind of predictive analytics which helps to give idea about most critical factors affecting the growth. Business intelligence is proved to be beneficial in decision making. We analyze all data like orders, inventory, accounts, and point of sale transactions and also of customers.
Key Performance Indicators is a term
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This creates a so-called closed-loop decision making and action-taking system for managing and optimizing business operations.

An efficient and integrated closed-loop system must enable a business to work smarter by closely aligning business performance to tactical and strategic business goals. This creates a feedback loop where positive activities are recognized and encouraged, while value-detracting activities are either improved or eliminated.

The need for organizations to be more agile, however, requires that this closed-loop process also be employed to optimize day-to-day business activities. At present, most data warehouses do not provide the near-real-time or low-latency transaction data required for such processing. The solution is to use BI applications against live transaction data, or to capture transaction data in-flight, and integrate it into a low latency data store (which may be an extension to an existing data warehouse).
Business intelligence applications provide new and calculative approach and helps in business development. BI results in following benefits.
• Better decision making
• Increase in revenue
• Reduction in costs
Three types of business intelligence (BI) exist, according to the general consensus of the IT industry: strategic, tactical and operational. Strategic BI and tactical BI are typically used in combination by senior managers and business analysts to
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